HARESH PHARMA CHEM Vs. MAX GB LIMITED

JUDGEMENT

(1.) The plaintiff has filed the present suit for (i) rendition of accounts; (ii) declaration; and (iii) injunction. The plaintiff had entered into an agreement dated 27.5.1994, called "Agreement for Consignment" for sale of medicinal goods of the defendant on the terms and conditions agreed therein initially for one year which was twice renewed and last agreement dated 7.4.1997 was for one year. It contemplated supply of medicinal goods by the defendant to be sold on commission basis by the plaintiff. Plaintiff was liable to make payments of those goods to the defendant and on the sales effected the plaintiff was to get 2% commission on the net invoice price. In pursuance of the agreement the plaintiff had furnished a Bank Guarantee of Rs. 40 lakhs entitling the defendant to claim from the said Bank Guarantee the amounts that may be due from the plaintiff towards the supply. Though this agreement was for one year however the supplies had been made upto 14.11.1997 only. The defendant demanded payment of their dues amounting to Rs. 45.51 lakhs vide letter dated 15.4.1998. This demand is disputed as according to the plaintiff only a sum of Rs. 31.74 lakhs is due and plaintiff had informed the defendant that the amount will be paid in May/June, 1998 when funds will be available with them. The defendant has invoked the Bank Guarantee in full on 22.4.1998. The plaintiff has alleged that this invocation of the Bank Guarantee of Rs. 40 lakhs is illegal, unwarranted and un-enforceable.

(2.) In this suit the plaintiff has claimed the following reliefs :-

(3.) For the purposes of these reliefs the suit for purposes of court fees and jurisdiction has been valued as under :-